Joint Venture (JV)

What is a Joint Venture (JV)? A joint venture (JV) is a commercial enterprise in which two or more organizations combine their resources to gain a tactical and strategic edge in the market. Companies often enter into a joint venture to pursue specific projects. The JV may be a new project with similar sets of…

External Growth

What is External Growth? External growth (also known as inorganic growth) is referred to as the growth of a company derived from using external resources and capabilities rather than internal business activities. External growth is the alternative to internal (inorganic) growth. The main advantage of external growth over internal growth is that the former provides…

Organic Growth

What is Organic Growth? Organic growth is the process by which a company expands on its own capacity. In an organic growth strategy, a business utilizes all of its resources – without the need to borrow – to expand its operations and grow the company. Organic growth is typically marked by an increase in output,…

SWOT Analysis

What is a SWOT Analysis? A SWOT Analysis is one of most commonly used tools to assess the internal and external environments of a company and is part of a company’s strategic planning process. In addition, a SWOT analysis can be done for a product, place, industry, or person. A SWOT analysis helps with both…

Emotional Intelligence

What is Emotional Intelligence? Emotional Intelligence (EI), also known as Emotional Quotient (EQ), is the ability to manage one’s emotions and the emotions of others. The term emotional intelligence first appeared in a 1964 paper by Michael Beldoch and gained popularity in 1995 in a book written by science journalist Daniel Goleman. Today, emotional intelligence…

Interpersonal Intelligence

What is Interpersonal Intelligence? Interpersonal intelligence refers to the ability of a person to relate well with people and manage relationships. It enables people to understand the needs and motivations of those around them, which helps strengthen their overall influence. People with interpersonal intelligence seem to stand out in a crowd as people with lots of…

Leadership Theories

What are Leadership Theories? Leadership theories are schools of thought brought forward to explain how and why certain individuals become leaders. The theories emphasize the traits and behaviors that individuals can adopt to boost their own leadership abilities. Early studies on the psychology of leadership pointed to the fact that leadership skills are inherent abilities…

Management Theories

What are Management Theories? Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations. Generally, professionals will not rely solely on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company…

backward integration

Backward Integration

What is Backward Integration? Backward integration is a process in which a company acquires or merges with other businesses that supply raw materials needed in the production of the finished product. Businesses pursue backward integration with the expectation that the process will result in cost savings, increased revenues, and improved efficiency in the production process.…